Foxconn nears deal to build iPhone manufacturing plant in India, report says

Posted:
in General Discussion edited May 2016
Apple supplier Foxconn is reportedly close to inking a deal with the Indian government to green-light plans to set up a manufacturing plant exclusively for Apple products.




A local report from The Economic Times of India claims Foxconn is close to signing the deed to a roughly 1,200-acre plot of land in Maharashtra, on top of which will be built a $10 billion manufacturing plant serving Apple's needs. From the time a deal is inked, sources estimate it will be about 18 months before the facility is operational.

Today's report comes nearly one year after Maharashtra Industry Minister Subhash Desai spilled details on Foxconn's interest in the region. At the time, the Asian manufacturing giant was said to be in talks to build an Indian iPhone plant as part of a wider strategy to diversify its workforce beyond China.

Amid concerns over slowing iPhone sales, Apple is increasing focus on growth markets like China, India and South America. In a recent interview, CEO Tim Cook said India holds great potential for iPhone and other Apple products, noting a current rollout of LTE technology and a huge population of consumers below the age of 25.

Apple has also been working to open Apple Stores in the country, a move that would increase brand visibility and offer customers first-party purchasing and service options. Past efforts were stymied by India's foreign direct investment trade policy, which requires single-brand stores to source at least 30 percent of goods from domestic suppliers, but a recent relaxing of those norms have presented Apple with an opportunity.

According to the latest reports, Apple's bid for exemption was granted by a committee headed by Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek

Despite its international standing as an industry powerhouse, Apple is still having problems navigating India's strict commercial guidelines. Last week, an unsubstantiated report claimed Indian government officials rebuffed a proposal to import and sell used iPhones in the country, a down-market strategy aimed at consumers not accustomed to paying top-tier prices for their smartphones.
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Comments

  • Reply 1 of 30
    foggyhillfoggyhill Posts: 4,767member
    Samsung better be ready for an onslaught within 2 years.
    calijbdragon
  • Reply 2 of 30
    bobschlobbobschlob Posts: 1,074member
    India agrees to used iPhone deal, or everybody 'walks'.
    Nut-up, Apple!
    calilatifbpjbdragonronn
  • Reply 3 of 30
    sockrolidsockrolid Posts: 2,789member
    ...
    Last week, an unsubstantiated report claimed Indian government officials rebuffed a proposal to import and sell used iPhones in the country, a down-market strategy aimed at consumers not accustomed to paying top-tier prices for their smartphones.
    Samsung payola much?
  • Reply 4 of 30
    sirlance99sirlance99 Posts: 1,262member
    sockrolid said:
    ...
    Last week, an unsubstantiated report claimed Indian government officials rebuffed a proposal to import and sell used iPhones in the country, a down-market strategy aimed at consumers not accustomed to paying top-tier prices for their smartphones.
    Samsung payola much?
    Proof much?
    anantksundaramtechlovercnocbuisingularity
  • Reply 5 of 30
    robin huberrobin huber Posts: 3,433member
    Perhaps the plant is greasing the wheels for Apple to sell used phones. Would be awkward to have a plant full of Indians unable to afford the product they are building. 
    jbdragonronn
  • Reply 6 of 30
    michael scripmichael scrip Posts: 1,915member
    Perhaps the plant is greasing the wheels for Apple to sell used phones. Would be awkward to have a plant full of Indians unable to afford the product they are building. 
    So... exactly like it is in China?
    anantksundaramrepressthislatifbpdiplicationnolamacguy
  • Reply 7 of 30
    calicali Posts: 3,494member
    Perhaps the plant is greasing the wheels for Apple to sell used phones. Would be awkward to have a plant full of Indians unable to afford the product they are building. 
    So... exactly like it is in China?
    They're not poor.

    Apple should probably subsidize the plant in exchange for some ownership.

    Logic tells me Apple is but I don't see any mention in the article.
    edited May 2016
  • Reply 8 of 30
    danoxdanox Posts: 501member
    India is a waste of time, anyone who can afford a iPhone has one, the main problem in India is the same as the one in Brazil (Corruption).
    jbdragon
  • Reply 9 of 30
    anantksundaramanantksundaram Posts: 20,174member
    danox said:
    India is a waste of time, anyone who can afford a iPhone has one, the main problem in India is the same as the one in Brazil (Corruption).
    Yeah, China is totally corruption-free. 
    viclauyycbaconstangcnocbuironn
  • Reply 10 of 30
    SpamSandwichSpamSandwich Posts: 33,408member
    Presumably Foxconn will be on the hook for that plant should the Indian government suddenly change their tune and confiscate the facility for whatever reason.
  • Reply 11 of 30
    slprescottslprescott Posts: 763member
    If Foxconn devoted part of the new facility to refurbishing the used iPhones, and the staffing was 100% Indian, maybe this would satisfy the "Made in India" requirement that is (reportedly) blocking the used-iPhone-in-India plan...?
    baconstang
  • Reply 12 of 30
    anantksundaramanantksundaram Posts: 20,174member
    Presumably Foxconn will be on the hook for that plant should the Indian government suddenly change their tune and confiscate the facility for whatever reason.
    When did the Indian (or Brazilian or Chinese) government last 'confiscate' the facility of a global company? Whose was it?
    baconstangronn
  • Reply 13 of 30
    flaneurflaneur Posts: 4,526member
    Presumably Foxconn will be on the hook for that plant should the Indian government suddenly change their tune and confiscate the facility for whatever reason.
    Here's a tip: face downwind when pissing on the parade, so as not to get it all over your penny loafers.
  • Reply 14 of 30
    foggyhillfoggyhill Posts: 4,767member
    The problem in India is massive inconsistent regulations, a high level of protectionism and yes corruption.
    The "cost of doing business" in India is large for all companies (even Indian ones), especially big ones; for foreign ones, it's especially painful.
    The people suffering through that are Indians themselves; as this has suppressed GDP below its potential for decades.

    They can only hope that eventually this will all sort itself out so they can exploit their vast potential.
    A few decades of high, China like (1980-2015), GDP growth would massively transform India.
    edited May 2016
  • Reply 15 of 30
    radarthekatradarthekat Posts: 3,331moderator
    Perhaps the plant is greasing the wheels for Apple to sell used phones. Would be awkward to have a plant full of Indians unable to afford the product they are building. 

    ---

    Awkward like workers at a premium car manufacturing facility not being able to afford the products they build?  Or like contract electricians not being able to afford a $30 million home they are wiring?  Or workers sewing Coach bags not being able to afford to buy one?  I'm not seeing any validity in your point.
    nolamacguy
  • Reply 16 of 30
    lkrupplkrupp Posts: 8,998member
    Anything that gives Apple some leverage with China is okay with me. Maybe Foxconn should build a plant in Arizona or New Mexico. They’ve got plenty of undocumented “guests” who would work for less than minimum wage. 
  • Reply 17 of 30
    cnocbuicnocbui Posts: 3,613member
    Presumably Foxconn will be on the hook for that plant should the Indian government suddenly change their tune and confiscate the facility for whatever reason.
    When did the Indian (or Brazilian or Chinese) government last 'confiscate' the facility of a global company? Whose was it?
    India - 2013.

    India court seeks value of Nokia factory seized in tax dispute

    An Indian court extended a hearing over local tax authorities' seizure of a Nokia factory

    http://www.reuters.com/article/us-nokia-india-factory-idUSBRE9B90P920131210




  • Reply 18 of 30
    lkrupplkrupp Posts: 8,998member
    Perhaps the plant is greasing the wheels for Apple to sell used phones. Would be awkward to have a plant full of Indians unable to afford the product they are building. 

    ---

    Awkward like workers at a premium car manufacturing facility not being able to afford the products they build?  Or like contract electricians not being able to afford a $30 million home they are wiring?  Or workers sewing Coach bags not being able to afford to buy one?  I'm not seeing any validity in your point.
    It’s all about the mindset that says everybody should make the same amount of money so life will be fair and balanced. To each according to their needs, from each according to their abilities. Level the field, equalize the wealth, nobody fails. Vote for Bernie!
  • Reply 19 of 30
    anantksundaramanantksundaram Posts: 20,174member
    cnocbui said:
    When did the Indian (or Brazilian or Chinese) government last 'confiscate' the facility of a global company? Whose was it?
    India - 2013.

    http://www.reuters.com/article/us-nokia-india-factory-idUSBRE9B90P920131210




    Seriously, assets being seized by the government on account of tax disputes is all you can come up with? Have you heard of the IRS? No, let me try something else: can you name ONE country where that does NOT happen?

    Please come back and post when you have something intelligent on this topic. I know the day is not yet long where I live, but this post qualifies for the most idiotic of the day. 
    edited May 2016 MacProronn
  • Reply 20 of 30
    dick applebaumdick applebaum Posts: 12,527member

    Duplicate
    edited May 2016
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